The good news is that the DJIA has rebounded from a low of 6440 and has pushed the index back into the trading range.  The bad news is that the trading range is still going downwards.

Should the index push itself higher, it will meet resistances at the 50-day moving average at 7698, and at the 100-day moving average at 8178, before it can try to test the resistance of the trading range at 8450.

Based on what we see in the MACD, we have no reason to be euphoric because there are no indications that this is the bottom. The DJIA is just rallying.  For those who want to try their luck and make a few bucks, this may be your opportunity.  But you have to buy selectively as many issues are still being hammered.

Recommendation: Buy selectively
Resistance: 7698